So I have my squid proxy up and running and I connect to my router via PuTTY. The following config works in the SSH tunnels.
L8888:192.168.0.1:3128
But if I change it to the device name of WNR3500L:
L8888:WNR3500L:3128

I get an access denied error. So that tells me I am connecting to the proxy but it is rejecting the request. Do I need to had a line in the config somehow for this?

I fixed it. With ipv6 enabled. It routes the hostname to both ip4 and ip6 addresses. I'm guessing that PuTTY doesn't support the ip6, so it freaks out and denies access.

So in basic info, I put a different hostname, like WNR3500Lv2. Then in DHCP assigned 192.168.0.1 to the LAN MAC and name WNR3500L. Now it works just fine since in the hosts file WNR3500L is only associated with the ip4 address and not the ip6 address.